OpenAI Gets $5.5 Billion Stake in Energy Company

OpenAI has received stock options worth $5.5 billion in SB Energy, a company building massive data centers to meet the skyrocketing demand for AI computing power. SB Energy is planning a $5 billion to $7 billion initial public offering (IPO) on the Nasdaq, and OpenAI’s options will start vesting when the IPO closes.

SB Energy is not just a landlord—it’s a strategic partner. OpenAI has already invested $500 million in the company and plans to buy $50 million in OpenAI software, including enterprise tools like ChatGPT, through 2028. In return, SB Energy is building data centers in southern Ohio with enough power for 8 gigawatts of computing capacity—enough to run millions of AI tasks at once. But there’s a catch: these data centers don’t exist yet. Only a small fraction (800 megawatts) is under construction, and the rest is still in the planning stages.

This deal highlights a growing trend: AI companies like OpenAI are locking in long-term deals with energy and infrastructure firms to secure the massive power and computing capacity they need. It’s like a landlord giving a tenant a huge discount in exchange for a long-term lease. But it also creates risks. SB Energy admits it’s heavily dependent on OpenAI—if the AI company runs into financial trouble, SB Energy could suffer too.

The arrangement also involves Nvidia, which has invested $3 billion in SB Energy and guaranteed part of the project’s value. This shows how a small group of tech giants are becoming financially intertwined, shaping not just AI capabilities but also the cost and availability of AI services for everyone else.